Uncertainty has surfaced over the recent sale and purchase of a massive stake in First HoldCo, the parent company of First Bank of Nigeria.
The transaction involved the transfer of significant shareholdings from Oba Otudeko and Hassan Odukale, both former chairmen, to Femi Otedola, who now serves as Group Chairman. As a consequence, Otedola’s holdings in the group have surged to an unprecedented 40 percent—marking the largest stake in the bank’s history and the single largest shareholding among Nigeria’s tier-1 banks.
Despite the scale of the deal, questions have arisen regarding disclosure and regulatory compliance.
Under trading rules, transactions involving over 5 percent of a company’s shares are meant to be reported, yet no official notification has been made public so far. The deal accounted for approximately 25 percent of First HoldCo’s total shares.
Insiders revealed the deal was conducted off the trading floor, reportedly as part of an arrangement to resolve a long-standing dispute between the board and the two former chairmen.
The agreement allegedly saw Otudeko and Odukale cede their shares in exchange for the withdrawal of legal proceedings against them.
The transaction, executed through 17 negotiated trades at a price of ₦31 per share, resulted in the transfer of 10.43 billion units of First HoldCo’s shares, with an estimated value exceeding ₦324 billion.
First Securities Ltd was the buyer across all 17 deals, while the sellers included several major stockbrokers.
The acquisition signals a major change in the ownership structure of one of Nigeria’s oldest and most significant financial institutions.
The development is seen as a turning point with major implications for the group’s governance, regulatory relations, and the broader Nigerian banking sector, as market watchers await clarity and further developments from the institution.
